Would You Tie Yourself to a 50 Year Mortgage?

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Episode Transcript

Speaker 1 (00:00):
Six one seven two six six sixty eight sixty eight
is the number. Okay, Trump and the Trump administration are
now seriously considering allowing fifty year mortgages, especially for first
time home buyers, as a way to tackle the growing
affordability crisis in our nation.

Speaker 2 (00:22):
Uh.

Speaker 1 (00:22):
This would lower mortgage payments by about a couple hundred
dollars a month, which would help, no question. But is
it worth it with all the extra interest? How this
thing would be you know, uh, spread out over not
thirty years, but now fifty years. Would you take a
fifty year mortgage? I know I wouldn't, And would you

(00:45):
be willing to eat that much more in interest payments?
And it would come to about three hundred and seventy
nine thousand on a four hundred and fifteen thousand dollars home.
So it's not a little, it's a lot of interest.
To me, that's a form of debt slavery. I don't
like debt. I don't like this kind of debt, and

(01:06):
I certainly don't like it when big banks because remember,
in the end, if this is a bubble, if you've
got too many people in forty to fifty year mortgages
and they can't make their payments and they go delinquent.
It's not the banks that lose the money, it's the
taxpayers that are on the hook. And in a way,

(01:28):
that's what happened within the two thousand and eight two
thousand and nine big recession. They were Fannie Mae, Freddie
Mack were giving out forty year mortgages and yeah, they
lowered the monthly payments, but ultimately the people that went
into these homes just weren't able to pay for the
kind of home that they were living in. And eventually

(01:51):
the bubble burst and the housing market completely collapsed. With it,
the stock market with it, much of the economy, and
we got Barack Obama and we got too big to fail.
So the banks, you know, that's the thing about these
greedy big banks. They make money on the front end
and then they make money on the back end. So

(02:14):
no matter what, they don't lose. You know, heads I win,
tails you lose. So if you make your payments, they
still make a ton of money on the interest. You
don't make your payments, the taxpayer, Uncle Sam will underwrite
the loss. So the bank, you know, it's like it's
like in a casino, the house always wins. In this case,

(02:38):
the big banks always win six one seven two six
six sixty eight sixty eight agree, disagree. Eric in Plymouth,
Thanks for holding Eric, and welcome.

Speaker 3 (02:54):
Good morning, Jeff. Hi Eric, Now yeah, thanks for taking
my call. Yeah yeah.

Speaker 4 (02:59):
The realization here, Dave is yeah, it is the house,
and the house is going to win in this fifty
year Okay, well how is it going to benefit the people?

Speaker 3 (03:09):
Okay? And reverse, Well we've been through this again.

Speaker 4 (03:14):
Realization. You just I just laid out this moment from
from from bush Gay who the surveillance state to.

Speaker 5 (03:25):
Oh bombay.

Speaker 1 (03:28):
Eric, Let's see if we can try to reconnect as
your phone connection is horrible. Every second word, we're losing it.
But and we just dropped him. I'm sorry, Eric. No, look,
let me just ask all of you this because this
is the counter argument, and I think it's a good
counter argument, which is, well, look, Jeff, instead of renting,

(03:50):
and if you rent, you're not building any equity, right,
I mean, sure, you've got a roof over your head,
but the money's gone.

Speaker 3 (03:57):
Right.

Speaker 1 (03:57):
You give your check to your landlord and that's it.
You get nothing in return for it. But if you
go from a rental apartment to honing your own home,
even if it's a fifty year mortgage, Well, whatever little
equity is being built up, it's yours. So you're living
in something that you own or in the process of owning.

(04:20):
So it's still much better than just being out on,
you know, just renting. So yeah, it's more interest. Yeah,
it'll be paid off in a much longer time period.
You can, by the way, if it goes up in value,
you can resell it, pocket the difference, get yourself a
better home or at a better mortgage rate. In other words,

(04:42):
something is better than nothing. And what Trump is now offering,
or at least his people are now offering, is something.
It's a couple hundred dollars less a month in mortgage payments,
and it's a chance to own a home, especially for
younger people in which that dream is now gone. So

(05:05):
I'm just curious, what say you? Six one seven two
six six sixty eight sixty eight is the number my
strong mic? Who would you like me to go to? Next?
Mike Kim in Brighton. Thanks for holding Kim, and welcome, good.

Speaker 6 (05:23):
Morning, Jeff. Thank you for taking my.

Speaker 1 (05:25):
Call, my pleasure.

Speaker 6 (05:27):
I am completely against this idea and I have to
say that politicians are not our friends. Politicians are the
enemies of taxpayers. The number one way, in my opinion,
to stimulate the economy is to index the capital game's
rate to inflation. People don't seem to realize that we're

(05:49):
actually all slates. Some of us live in nicer cages
than others, but we're all slates. And the two main
things that have happened over the past five years that
were so deleterious to our way of life we number
one opening the borders and number two with the money

(06:10):
printing and black Rock and Vanguard buying houses. That would
be a third point, but that's partly with the money printing.
And so people live in houses, and the government values
the property and they can increase the mill rate, and
then when they increase the value, they can tax you more. So,

(06:32):
if we're paying taxes on property and our home, who
really owns the property and the home? And so I
think the bankers, the Luciferian money printers, are really the
people who are responsible for all of this. And the
population is very ignorant. They don't understand how money works.

(06:55):
They don't understand our system. And we had even Kamala
ding don com Kim, can.

Speaker 1 (07:02):
You do me a favor? You're a genius. I'm telling you.
This is a master class which you are now laying out.
Six one seven two six, six sixty eight sixty eight
is the number. Okay. President Trump now says Republicans need
to focus like a laser beam on the affordability crisis,

(07:23):
the affordability issue. He doesn't want the Democrats to take
it away from them, as now it appears, at least temporarily,
they've done with their latest victories in New Jersey, Virginia
and of course Mamdani in New York City. And so
one of the ways now they want to try to
make the cost of housing more affordable is to allow

(07:46):
and introduce a fifty year mortgage. It'll lower your monthly
payment couple hundred dollars every month, no question, But you're
going to be paying a lot more interest over a
much longer period of time. Good idea, bad idea. Let's
go right back to Kim in Brighton, she was on

(08:07):
fire saying that it's all we're basically now living in
a form of debt slavery, that we're paying way too
much in property taxes, capital gains needs to be indexed
to inflation. What happened under Biden was there was so
much spending that it led to massive printing of money.

(08:29):
And when you print money, it makes inflation go through
the roof, which is exactly what happened. And we are
now at the mercy of the bankers and the money printers.
Please Kim pick up where you left off.

Speaker 6 (08:43):
Yes, thank you, Jeff. So, in my opinion, this is
all intentional, and it's to keep people like tax slaves,
because that's.

Speaker 7 (08:52):
Really what we are.

Speaker 6 (08:54):
And I call them the Luciferian money printers. And you
look at what the prices of houses were, say in
twenty twenty and Trump's first term. The first thing that
happened was the text rate where was lowered and we
all got bigger paychecks. But the whole system is stacked
against people and the big war on cash. People have

(09:16):
to understand this is a very serious thing. When you
can pay cash for a property, you don't give the
bankers any opportunity to create more money. You own your
property outright, but again that own is in quotation marks.
So what they prefer, like if you spend one hundred
dollars in the economy, that one hundred dollars remains.

Speaker 7 (09:36):
One hundred dollars.

Speaker 2 (09:37):
No matter what.

Speaker 6 (09:38):
If I give you one hundred dollars, you buy something
for one hundred dollars, it's still one hundred dollars. But
if I buy something from you and I use a
credit card, they get their one point five percent. If
you sell something or buy something, there's another one point
five percent, and so that goes on forever and ever,
and that's how the banks make the money. But going

(09:59):
back to and ignorant population and also people are stupid.
You had Kamala and the Kamala type voters thinking that
the recent things are out of control with inflation is
because of price gauging. As she said, price gauging, not
price gouging. And people don't seem to understand that it's

(10:20):
the degradation of the currency. So it cost one thousand
dollars to buy an ounce of gold, now it's four
one hundred dollars to buy the same thing. That's not
a raised price. That is a decrease in the value
of the money. And I think that is what the
goal is. And Buquelea, who's the president of al Salvador.

(10:41):
You know, I went there last year. He says, if
your government prints money, why do you pay taxes? We
never created the problems of two thousand and eight, and
I'm sure a lot of people have a very bad
feeling about things because things are out of control. And
I believe that's intentional. You said a house is four

(11:02):
hundred and fifteen thousand dollars. People coming out of college.
How is it that they can have a college degree
and work hard and do well and they can't even
afford a car or an apartment. That's intentional? And how
is the other way that that happened. You open the borders,
You let twenty million illegals in apartment that rented for

(11:22):
seven hundred and fifty. Now here come the illegals with bouchers,
and suddenly it's twelve fifty or fifteen hundred or two thousand,
and so the regular taxpayers can't afford anything. Do you
see illegals homeless on the street. No, you see Americans
homeless on the street. And I think that is an
absolute disgrace, and I think it's intentional.

Speaker 1 (11:43):
I think you hit the nail right on the Headkim.
And look, this is the only thing I could add.
It's a master class. What you've just now delivered is
a master class. Look to everybody listening, this is so important.
The reason why you don't want death and deficits, in
other words, too much government spending is because it leads

(12:04):
exactly to what Kim says and what Bukeley, the president
of El Salvador, is pointing out. The only way to
pay for it is either through higher taxes or through borrowing.
And how do you borrow. You have to borrow by
printing money. And what happens when you print money automatically
it leads to higher inflation. So you're paying more for

(12:26):
the same cup of coffee, the same bottle of coke,
the same bag of chips, the same cheeseburger, the same pizza,
the same apartment, the same whatever, the same car. That's
what inflation does. That's why you never allow the kind
of insane spending that we saw, for example, under Biden,

(12:49):
because it automatically leads to more money printing. And that's
where the Federal Reserve comes in. And it's diabolical. It's evil,
the Federal Reserve. It's evil, it's purely it's one of
the most evil, destructive institutions ever developed. Because that's what's
that's the key institutions is just keep printing money. That's

(13:10):
why the banks love the FED. That they love the FED.
The globalists love the FED. The donor class, the wealthy
financial class, they love the FED because that's print more money,
print more money, print more money, print more money. And

(13:31):
so you're right, the elites, led by the banks, make
money hand over fist on everything. But who gets poorer.
We do, and we're dead slaves because now you're just
perpetually in debt. Look, let's just be honest. I hate
to say this, but let's be honest. If you look
at the mortgages that we're holding, if you look at

(13:53):
what we owe on our cars, if you look at
everything that I mean, we're our credit card cards. Forget
the fact that we're the most indebted nation in the
history of the world. Personally Americans, we're swimming in debt.
I mean, I'm not saying every single one of us,
but most of us we're swimming in debt. Well, if

(14:16):
you're in debt, you're not the master of your own destiny.
You're right, you're basically a slave. So we're a slave
to make the payments on our debt, and then we're
enslaved to keep paying more and more taxes as inflation
keeps going up and up, meaning the cost of everything,
so we're just paying more in prices. Well, now you

(14:38):
know why there's no middle class or we're feeling squeezed.
Now you know why we're feeling it from every angle.
Now you know why you ask yourself, how come I
feel so much worse off than say, fifteen or twenty
or twenty five years ago, Because this is why. So
that's why you never want run away irrespond constable spending,

(15:01):
because in the end, it's not the government that pays
for it, it's you, it's me, it's the ordinary taxpayer.
I want to ask you something, Kim. Are you still there, Kim,
I'm here, Okay, go ahead, all right, Kim. I want
to read to you. These are two messages I got

(15:24):
from Larry, and I want to read them to you,
and I want to get your reaction. This is what
Larry wrote, and I think he spot on on both,
but I'd like to get your take, he says, Jeff,
this reminds me of a football team that's firing on
all cylinders. In the first half, we're up two scores

(15:45):
and then we decide to drop that game plan and
blow the game in the second half. Trump had the
formula in his first term and we were thriving. Stick
to what works. In other words, Larry is saying he

(16:05):
thinks that Trump's economic policy was better in his first
term than in his second term. And then he says this,
Jeff broken leg. Government regulations and artificially inflated interest rates
have made it near impossible to buy, especially a home,

(16:28):
and they're telling us more government regulation is needed to
fix it. No, thanks, Kim, I'm just curious. You talked
about the big tax cuts in the Trump in the
first term, more money in our pocket. Interest rates were
much lower when Trump was in his first term. It's
not his fault, Jerome Powell, Biden. They had to raise

(16:51):
the rates. But what I'm saying is it seemed like
Trump had more of a focus on improving the work
king middle class and making the cost of living lower
than he is in this term. Am I wrong? Is
that just a perception? What say you? And is Larry

(17:12):
right that if you look at housing, you take away
government regulations and artificially high interest rates and the housing
market will go like gangbusters. What say you.

Speaker 6 (17:25):
With Larry's points one hundred percent, Trump is really different
this time. It's like he's a different person. I felt
that he was the first politician who represented me as
a taxpayer. I do not feel that now. I feel
with all this foreign getting six hundred thousand Chinese and

(17:46):
doing this and that, and nothing is helping us here
at home. And again going back to the property taxes,
you look at the millage rate and they can.

Speaker 1 (18:00):
Oh, no, you're right, No, yeah, I'm sorry, were up
against it, but no, you're right. They just bang they
can just the way they just can artificially, just keep
raising your property taxes. I mean they're choking us, they
really are. Jeff Kooner Boston's bulldozer six one seven two
six sex sixty eight sixty eight is the number. Okay,

(18:20):
let me ask all of you double barreled question. What
do you make now of Trump's proposal for a fifty
year mortgage, especially for first time home buyers. Is it
a good idea? Do you like it? Do you not
like it? And let me ask you would you take
on a fifty year mortgage? And do you feel like

(18:44):
the American dream of owning a home is now slowly
slipping away? Is it now just becoming too expensive to
buy a home? Six one seven two six six sixty
eight sixty eight lines are loaded. Victor in Georgetown. Thanks

(19:06):
for holding Victor, and welcome.

Speaker 4 (19:11):
Cooner Man. Always a pleasure. Or go ahead, my friend,
I'm right here. Can you hear me?

Speaker 8 (19:16):
Okay, yep, you're on.

Speaker 3 (19:18):
Go ahead, buddy, Okay.

Speaker 4 (19:20):
I'm closed over six hundred million dollars in real estate
deals over six decades, so what I might have to
say might have a little more weight than what the
mill rate is on your real estate, which is a
local item. But anyway, I'm not against the fifty year mortgage.
I'm not in favor of it. And as far as

(19:41):
first time home buyers, if the interest rate goes down
and if the fifty year mortgage comes in to play,
real estate values are going up, not down. It's going
to be instematically. When you have more competition for a
very limited sub your rate, I mean your car is

(20:06):
going up. So as an example, if you needed a
car and there's only one car, but they lowered the
interest rates overnight, and now there's fifty people on the
car lot looking to buy that car, are they going
to give it away or are they going to charge
premium pricing. So that's what the fifty year loan does.
And by the way, let me just comment on that,

(20:27):
if you're lucky enough to be alive fifty years from now,
are you going to be paying to live somewhere? Of
course you are. The fact that it's a fifty year
mortgage does not mean anything as far as the duration
you're going to be paying either rate or a mortgage
if you're in the freaking house. I mean, people get

(20:47):
hung up on that, Oh it's fifty years. Well, you
know what, people take out a thirty year loan. They
stay there less than fifteen years, and then they move
on and they and they take, you know, take on
the next style, the next challenge. But the only hope
for the person buying a house today is more supply.

(21:10):
And in some states have passed a law that says
you can add an additional dwelling unit to your property.
So like in New Hampshire, if you own a house
and you want to put a seven hundred or eight
hundred square foot unit like a mini unit on your property,
you can do that, maybe for an in law, maybe

(21:30):
for a newlywed or what have you. You have to increase supply.
If you don't do that, jet everything is absolutely irrelevant.

Speaker 1 (21:43):
Yeah it's cosmetic. Yeah, I know it's cosmetic. No, I
hear you, Victor, Let me ask you this. Just let's
just stick to Massachusetts just for argument's sake. We have
a crying need for more housing. There's's no question. Now,
why aren't they building more supply? Just why aren't builders

(22:04):
going out there building more housing, communities building more homes.
There's such a demand. Why aren't they doing it? What's
your theory?

Speaker 4 (22:17):
Specifically Massachusetts, If you look to the east, you got
an ocean, So you're not building anything out there, all right,
as far as your regular towns, Nimby, not in my backyard.
They don't want a big condo complex. We put one
hundred unit condo complex in Newburyport fifteen eighteen years ago.

(22:39):
They thought we were the devil, right, because it affects
their community. So it's local politics. It's state politics if
you little things like this, like the governor not allowing
natural gas pipelines coming into the state so that we
can't supply the buildings with an economical heating supply. We

(23:05):
have to go to electric heating, which is ludicrous, and
let me just throw it aside in here. Jeff you
may you may agree with me, but Pam Bond I
heard someone take a cheap shot at Pam Bardy this morning. Listen.
They just arrested Governor hocals staff for being a communist spy.

(23:25):
It was on Yes last night's news. You may have
picked it up. So the corruption in government is notorious
in Massachusetts. There is nothing saying that's going to happen
in the state until you get competition for the Democrats.

Speaker 1 (23:44):
I agree that's on that your Frankly on most of
your points, but on that, your victor, you're one thousand
percent correct. There is so much corruption on Beacon Hill,
so much corruption in the governor's office, so much corruption
in the mayor's office. It's disgusting. Until you have a
competitive two party system, until you end one party rule,

(24:06):
until we start getting some serious, thoughtful Republicans in positions
of power, it's just gonna get worse and worse and worse. Look,
I went I mentioned this on X and I hope
all of you go in and read it and pass
it on. People don't know this. Michelle Wu listen to
this miss It's a bit of a side topic, but

(24:26):
it goes to corruption. Michelle Wu, the moonbath mayor of Boston,
now that she won reelection, is gonna give herself a
forty three thousand dollar rais. Her annual salary listen to
this is now gonna be two hundred and fifty thousand

(24:49):
dollars a year a year, two hundred and fifty k. Now,
remember there's so I mean, she's got a lavish expense out,
gold plated health plan, dental plan, twenty four to seven,
around the clock security, she's got a car service, she's
got I mean, I could go on and on. So

(25:11):
it's not just a straight twoint fifty and that's it.
All of these other perks and benefits. But my point is,
as I said on X objectively, I mean just literally,
it's there's no disputing this. Under her watch, crime has exploded.
Violent crime has gone way up. Drug use, open air

(25:33):
drug markets like you see on mass and casts has
gone through the roof, Inflation through the roof, cost of
living through the roof, you go right down. She has
run this city into the ground. On what planet does
this woman deserve a race? And I'm not talking three

(25:54):
you know, let me ask all of you, when have
you gotten a forty three thousand dollars a year race
like just boom in one shot, two seven to two fifty.
When have you gotten the forty three thousand dollars raise?
I mean, it's it's obscene. So the more incompetent you are,
the more corrupt you are, the more destructive you are,

(26:15):
the more money you make in this in this state,
if you're a hack, it's unbelievable. And by the way,
she has made Boston unaffordable. I mean, I'm not saying
it was cheap before, far from it, but a Yai
sanctuary cities encouraging illegals to pour in her mini green

(26:39):
new deal. I mean you, she has made housing almost
She's made it almost impossible to build anything in Boston,
and she has now literally flooded the city with illegals.
And by the way, and the Boston City Council, no, no, no,
not just her, the city council voted themselves in massive

(27:01):
pay raises. So Victor's you know, as I like to say,
not one hundred, he's a thousand percent correct, So money
is changing hands, kickbacks. They're owned and dominated by the
environmentalists and the green lobby. There's tremendous pressure now not
to build homes, to force people into low income, big apartments,

(27:26):
low income housing. They don't want people to own a
home because it's bad for the environment, it's bad for
the climate change, it's too big of a footprint. I'm
not kidding. So what they want is they want fifteen
minute cities like in the Third World, where everybody is
stacked and packed into these high rise, low income apartments.

(27:50):
But not for them, I mean, not for the you know,
not for the ruling not for the party, not for
the ruling class. No, no, no, no, they get to keep
their mansions in datchas. But that's what are the peasants
for you and me? So that there it is in
a nutshell. Six one seven two six six sixty eight
sixty eight. Tom in Hudson, thanks for holding Tom, and welcome.

Speaker 2 (28:16):
I have a suggestion when people take out mortgages, if
they can pay at a rate like if they pay
a thousand dollars a month, if they pay two hundred
and fifty dollars per week, they will cut down near
length of their mortgage. And to answer your question, what

(28:37):
I take out a fifty year mortgage. The answer is
no because of the fact is if I reduce my
monthly payments, then I'll have money to spend on something else.
But I might buy something that I really don't need,
but it's something I would like. Like, set of buying
a Ford Pinto, I would buy a Cadillac, I mean,

(28:59):
or a Link. So I would not do that.

Speaker 1 (29:03):
Tom, can you just hang on. I'm going to come
right back to you because you're making a very good point.
But as you know, eight o'clock Friday, you know what
that means, Cooner's Call Log, Caller of the Week.

Speaker 9 (29:22):
It's time for Cooner's call Log, where we showcase our
favorite color from the week.

Speaker 1 (29:28):
I can hear you? Can you hear me? Thanks for
holding Jack.

Speaker 5 (29:33):
I think there should be some accountability, definitely for the media.
Just as an example of something, I tried to reach
out to some source to get some truth, some unbiased news.

Speaker 4 (29:46):
So I reached out.

Speaker 3 (29:47):
To Sam and I thought they would be really good.

Speaker 5 (29:51):
But I just removed them from my phone last night
because it appears that each and every story that has
anything to do with Trump, they're snaring them and it's
so frustrating to me and I'm going to say this,
the journalist of today could definitely take a lesson from
Walter Cronkite and Huntley Brinkley.

Speaker 4 (30:10):
Those are the journalists that I grew up with.

Speaker 1 (30:12):
I could be wrong, but it seems as.

Speaker 5 (30:14):
Though they just put the news out there and they didn't,
you know, smear.

Speaker 4 (30:18):
There was no.

Speaker 5 (30:19):
Dishonesty, there was no lack of integrity. It was good
journalism and that's what I'd like to see today.

Speaker 4 (30:25):
But I think there.

Speaker 5 (30:26):
Needs to be accountability because it's just so sad. And
the one more thing I want to add, I don't
care what anybody says. I think action speaks louder than words.
And Donald Trump is a man of integrity, of honor.
He's a good man, and it's just terrible with the
mainstream media and the Democrats are doing to try to
smear this man.

Speaker 9 (31:07):
Be here every weekday on the Cooner Report between six
and ten am, and next week it could be you
on Cooner's call log.

Speaker 1 (31:15):
Please don't be a stranger. Call again, audience in the business. Jeff, Jeff, Jeff,
you say it all the time. It's true. I don't
know what else to tell you. Okay, congratulations to Jack
and honestly, again, a big thank you to all our callers. Honestly,
you make this show. What's really what's so special? Okay,

(31:37):
let me go back to Tom and Hudson. Tom, you
made some excellent points. Let me ask you. You tell
me if you agree or disagree. You know, Victor made
a very good point the previous caller where he said, Hey, look,
in fifty years from now, God willing, if you're alive,
you're gonna have to live somewhere, right either you live

(31:58):
in an apartment, you live in your own home, whatever
it may be. So what's the big deal? Take a
fifty year mortgage and I there's some logic to it,
there's no question. However, this would be my answer. I
don't want to keep paying interest through the nose. That
to me is what I hate about the fifty year mortgage.

(32:18):
You know, it's not how do I say this, It's
not because I got a fifty year commitment. You know, Look,
we took out a thirty year mortgage on our home. Okay,
it's a thirty year mortgage. Now. What I don't like
about a fifty year mortgage is that you're looking now
at three hundred and seventy nine thousand dollars in interest

(32:41):
on the top of the four point fifteen say, you
just go with the medium price of a home in America.
So I'm not just paying four hundred and fifteen thousand,
I'm basically paying eight hundred thousand dollars for the house
if you add in the interest. I don't want to
pay that kind of interest. And so to me, the
goal of owning a home, I think we're kind of

(33:02):
forgetting the second part. Yeah, of course you got to
have a pay you know, a payment. Nobody can help
you know, people can just pay cash on a house.
But the goal was pay it down. I mean my parents,
they said, pay down that house. The quicker the better. Yeah,
it may have to take a thirty year mortgage because
you have no choice, but pay it off in twenty

(33:23):
years or twenty five years or fifteen years or twenty
two years or whatever. Aggressively pay down the mortgage because
you want to live debt free. That's the point. You
want to live in a house, it's yours. The bank
doesn't own it, You own it. It's the same thing
with the car. And I'm gonna go I'm gonna come
right back to you, Tom, People now are taking ten

(33:45):
year loans on cars. You know, I have a you know,
a loan on my car. It's a five year loan. Now,
you know, my car, I think will still be around
in five years. It'll still work, it'll still have some value.
You're looking at a ten year long Let me tell
you what happens. A you're paying a lot more in
interest over ten years. So instead of paying it off

(34:08):
in five, you're paying it off in ten and that's
five more years of payments with a lot more interest.
So in the end, the car has cost you much
more than what you initially bought it for. And often
now most cars don't last. They start breaking down in
your eighth year, ninth year. So what you're starting to
see happen is literally people are paying for cars they

(34:32):
can't use anymore, they don't work anymore, but they're still
on the hook for the loan because they got a year,
a ten year loan on a car. So to me,
the goal in life has always been to be debt
free debt. If you don't have debt, you're liberated. You're free,

(34:54):
pay down your home as quickly as possible, pay down
your car as quickly as possible. I got a five
year loan. I'm trying to get it paid in three years,
so I'm accelerating the payments on it now. Sometimes I
can't because of the kids, and I got to pay,
you know, for extras. But the sooner the better. I

(35:15):
don't like debt to me. The problem is we're becoming
too addicted, whether it's housing debt, card debt, credit card debt. Tom,
am I wrong? Are we becoming a nation of debtors?
I'm just curious? What say you?

Speaker 8 (35:32):
Thank you?

Speaker 2 (35:32):
You just suggested. I paid off my house as quick
as I could, and then I kept up the payments.
And what I did was is I put them in
a separate account. And then when I went out and
bought my next car, my loan payments were half because
I made a good down payment on the car. And
then when after I paid that off, I continued making
the payments into the bank. And when I bought my

(35:53):
recent car, I paid cash. So I'm debt free. But
most people can't do that. But if they're paying one
thousand dollars a month in mortgage, if they pay two
hundred and fifty dollars a week, if they getting paid weekly,
or five hundred dollars every other week. They will cut

(36:13):
down their interest on the loan, and they will pay
it off sooner and at the same month, at the
rate that they I mean, the amount that they're paying every month.
And that's what I have to say.

Speaker 1 (36:28):
Tom, I got Tom. You're a brother from another mother.
I'm telling you, well, I listened to him. I'm like,
I'm just nodding my head up and down. Yeap, yep, yep. No,
we were, you know, paid down the mortgage even quicker.
We made more aggressive payments. Oh, I love you, you know.
Then I kept paying the same payments to pay down
my car. I'm like, I love you even more now.

(36:49):
And then I ended up you know, getting you know,
selling it and whatever. And then when I whatever, getting
rid of it, but I kept making more and more payments.
So then eventually I bought the car for cash. So
the house is you know, paid full and clear, and
the car is paid full and clear. Oh my god,
Oh that's for me. That's Nirvanah, I'm serious. Oh, no debt,

(37:13):
because then everything that you make, I mean, you gotta
pay taxes obviously, and you have bills, but overall, man,
you've got financial freedom. You've got independence, you've got mobility,
you've got income coming in. It goes right in your pocket.
You can build even more wealth with that. To me,

(37:33):
it's a debt trap. Avoid debt as much as you can,
and if you have to take on debt, get out
of it as quickly as you can. Take it for
what it's worth. Tom, thank you so much for that call.
And to me, that's old world wisdom. And we used
to be like that, you know. I remember. Look, even

(37:54):
my parents and all of their friends, you know it
would be, you know, a dishwasher, the idea of putting
a dishwasher on a credit card. This was like an
athema to them. No, you say, for the dishwasher, and
then you buy the dishwasher full price. Sure, you're inconvenience
for a couple more years, you don't have the dishwasher,

(38:16):
but then when you buy it it's yours, it's it's
you own it. But the fact that you buy, you know,
you don't you know, you buy it, but then you
put it on this you know, long term payment plant.
And to me, my parents were like, no, the store
owns or the bank owns your dishwasher. You don't own
your dishwasher. Now look full disclosure. We had a dishwasher.

(38:40):
We put it on a payment plant. But I'm just saying, ideally,
I'd like to me save and buy if you can
save and buy. But that's me. Six one seven two
six six sixty eight sixty eight is the number Tanya
in Boston. Thanks for and welcome.

Speaker 8 (39:03):
I just I got a couple of comments about the
mortgages that happened in the early two thousand, two thousand
and five. I graduated pharmacy school in oh four, and
when I had to do my taxes, I was single,
I had nothing to my name, and I got slammed

(39:23):
on taxes. I owed about thirteen grands, and so.

Speaker 3 (39:28):
Everyone said, get a house, get a house, get a house.

Speaker 8 (39:30):
So I bought a house during that time when those
loans were going out and I had.

Speaker 3 (39:37):
I bought a house for one thousand dollars good faith.

Speaker 8 (39:39):
So I had two hundred thousand dollars in school loans,
about one thousand dollars to my name.

Speaker 3 (39:44):
I wrote the check in good faith and I got
one of those loans.

Speaker 8 (39:47):
Those loans were not meant to be get the loan
and sit in the loan forever. The fine print of
those loans, and by the way, they came with points,
so I called them get my foot in the door loans.

Speaker 3 (40:01):
That's that's really what they were.

Speaker 7 (40:03):
So you get the loan and you you got to
pay this huge interest. Right, I think back then it
was like six and a half percent, and it's very
similar now because I think like right now they're right.

Speaker 3 (40:15):
Around six percent.

Speaker 1 (40:17):
So Tanya, can you please hang on. I know exactly
where you're going with this, and I want everyone to
hear your story.